Regulation FD.
Restaurant Brands International Inc. (the Company) intends to share the following information, or portions thereof, with investors.
As disclosed in Note 2 to the Company's Form 10-Q filed on April 30, 2021 for period ended March 31, 2021, certain prior year amounts in the statement of operations and accompanying segment results have been reclassified in order to be comparable with the current year classifications. These consist of the reclassification of advertising fund contributions from Franchise and property revenues to Advertising revenues and advertising fund expenses from Selling, general and administrative expenses to Advertising expenses, with General and administrative expenses now presented separately. Depreciation and amortization expenses related to the advertising funds have also been reclassified from Franchise and property expenses to Advertising expenses. These reclassifications did not arise as a result of any changes to accounting policies and relate entirely to presentation with no effect on previously reported net income. The following information reflects these reclassifications in the results of operations for each quarter of 2020 and for the full year 2020.
Results of Operations for each quarter of 2020 and full year 2020
Tabular amounts in millions of U.S. dollars unless noted otherwise. Segment income may not calculate exactly due to rounding.
|
Consolidated |
Three months ended |
Year ended |
Mar. 31 |
June 30 |
Sep. 30 |
Dec. 31 |
Dec. 31 |
Revenues: |
Sales |
$ |
503 |
$ |
406 |
$ |
541 |
$ |
563 |
$ |
2,013 |
Franchise and property revenues |
525 |
450 |
577 |
569 |
2,121 |
Advertising revenues |
197 |
192 |
219 |
226 |
834 |
Total revenues |
1,225 |
1,048 |
1,337 |
1,358 |
4,968 |
Operating costs and expenses: |
Cost of sales |
399 |
339 |
418 |
454 |
1,610 |
Franchise and property expenses |
123 |
132 |
125 |
135 |
515 |
Advertising expenses |
226 |
203 |
209 |
232 |
870 |
General and administrative expenses |
102 |
94 |
96 |
115 |
407 |
(Income) loss from equity method investments |
2 |
16 |
18 |
3 |
39 |
Other operating expenses (income), net |
(16) |
21 |
54 |
46 |
105 |
Total operating costs and expenses |
836 |
805 |
920 |
985 |
3,546 |
Income from operations |
389 |
243 |
417 |
373 |
1,422 |
Interest expense, net |
119 |
128 |
129 |
132 |
508 |
Loss on early extinguishment of debt |
- |
- |
- |
98 |
98 |
Income before income taxes |
270 |
115 |
288 |
143 |
816 |
Income tax expense |
46 |
(49) |
65 |
4 |
66 |
Net income |
$ |
224 |
$ |
164 |
$ |
223 |
$ |
139 |
$ |
750 |
|
TH Segment |
Three months ended |
Year ended |
Mar. 31 |
June 30 |
Sep. 30 |
Dec. 31 |
Dec. 31 |
Revenues: |
Sales |
$ |
465 |
$ |
374 |
$ |
506 |
$ |
531 |
$ |
1,876 |
Franchise and property revenues |
188 |
154 |
205 |
198 |
745 |
Advertising revenues |
46 |
39 |
51 |
53 |
189 |
Total revenues |
699 |
567 |
762 |
782 |
2,810 |
Cost of sales |
366 |
307 |
388 |
423 |
1,484 |
Franchise and property expenses |
81 |
81 |
80 |
86 |
328 |
Advertising expenses |
65 |
43 |
46 |
50 |
204 |
Segment G&A |
25 |
20 |
20 |
28 |
93 |
Segment depreciation and amortization (a) |
26 |
28 |
28 |
31 |
113 |
Segment income (b) |
189 |
147 |
258 |
229 |
823 |
(a)Segment depreciation and amortization consists of depreciation and amortization included in cost of sales, franchise and property expenses and advertising expenses.
(b)TH segment income includes $2 million, $2 million, $2 million and $3 million of cash distributions received from equity method investments for the three months ended March 31, June 30, September 30 and December 31, 2020, respectively, and $9 million for the full year 2020.
|
BK Segment |
Three months ended |
Year ended |
Mar. 31 |
June 30 |
Sep. 30 |
Dec. 31 |
Dec. 31 |
Revenues: |
Sales |
$ |
17 |
$ |
15 |
$ |
17 |
$ |
15 |
$ |
64 |
Franchise and property revenues |
273 |
233 |
305 |
302 |
1,113 |
Advertising revenues |
98 |
99 |
111 |
117 |
425 |
Total revenues |
388 |
347 |
433 |
434 |
1,602 |
Cost of sales |
17 |
16 |
16 |
16 |
65 |
Franchise and property expenses |
39 |
48 |
42 |
47 |
176 |
Advertising expenses |
108 |
105 |
105 |
124 |
442 |
Segment G&A |
37 |
30 |
37 |
42 |
146 |
Segment depreciation and amortization (a) |
12 |
12 |
13 |
12 |
49 |
Segment income |
200 |
160 |
245 |
218 |
823 |
|
PLK Segment |
Three months ended |
Year ended |
Mar. 31 |
June 30 |
Sep. 30 |
Dec. 31 |
Dec. 31 |
Revenues: |
Sales |
$ |
21 |
$ |
17 |
$ |
18 |
$ |
17 |
$ |
73 |
Franchise and property revenues |
64 |
63 |
67 |
69 |
263 |
Advertising revenues |
53 |
54 |
57 |
56 |
220 |
Total revenues |
138 |
134 |
142 |
142 |
556 |
Cost of sales |
16 |
16 |
14 |
15 |
61 |
Franchise and property expenses |
3 |
3 |
3 |
2 |
11 |
Advertising expenses |
53 |
55 |
58 |
58 |
224 |
Segment G&A |
13 |
10 |
12 |
14 |
49 |
Segment depreciation and amortization (a) |
2 |
2 |
2 |
2 |
8 |
Segment income |
55 |
51 |
58 |
54 |
218 |
General and Administrative Expenses
Our general and administrative expenses consisted of the following:
|
Three months ended |
Year ended |
Mar. 31 |
June 30 |
Sep. 30 |
Dec. 31 |
Dec. 31 |
Segment G&A: |
TH |
$ |
25 |
$ |
20 |
$ |
20 |
$ |
28 |
$ |
93 |
BK |
37 |
30 |
37 |
42 |
146 |
PLK |
13 |
10 |
12 |
14 |
49 |
Share-based compensation and non-cash incentive compensation expense |
21 |
23 |
19 |
21 |
84 |
Depreciation and amortization |
5 |
4 |
5 |
5 |
19 |
Corporate restructuring and tax advisory fees |
1 |
7 |
3 |
5 |
16 |
General and administrative expenses |
$ |
102 |
$ |
94 |
$ |
96 |
$ |
115 |
$ |
407 |
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Restaurant Brands International Inc. published this content on 02 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 June 2021 12:14:00 UTC.